The $2 Billion Experiment Ends
On December 1, 2025, ESPN BET quietly disappeared. Users who opened the app that morning found a new name, new logo, and new color scheme. The mint green had become electric blue. ESPN BET was now theScore Bet.
The rebrand marked the end of one of the most ambitious and expensive failures in sports betting history. PENN Entertainment’s 10-year, $2 billion deal with ESPN lasted barely two years. What went wrong offers lessons for anyone who follows betting market dynamics.
What Happened
In August 2023, PENN Entertainment announced a partnership with ESPN that seemed destined to reshape the industry. ESPN, the most powerful brand in American sports media, would lend its name and marketing muscle to PENN’s sportsbook. PENN would pay $150 million annually plus stock warrants for the privilege.
The deal included a performance clause: either party could exit after year three if market share targets weren’t met. On November 6, 2025, both sides agreed to pull the plug early.
ESPN BET never cracked the top tier of sportsbooks. FanDuel and DraftKings dominate the market, controlling roughly 78% of online handle between them. BetMGM and Caesars sit comfortably in third and fourth. ESPN BET, despite the media giant’s brand power, couldn’t break into that group.
The Brand Wasn’t Enough
ESPN’s brand recognition is unmatched in sports media. But brand recognition didn’t translate to market share. The sportsbook product itself, its odds, promotions, user experience, and payout speed, matters more than the name on the door.
This is a useful reminder for bettors. Public perception often lags reality. The public assumed ESPN’s entry would shake up the market. It didn’t. The established players had better products, deeper customer relationships, and more efficient operations.
PENN CEO Jay Snowden acknowledged this in the termination announcement, noting they had expected to “compete for a podium position in the space.” They never got close.
What Comes Next
The ESPN brand isn’t leaving sports betting entirely. DraftKings has become ESPN’s new official sportsbook and odds provider. DraftKings odds will be integrated across ESPN’s digital platforms throughout 2026, and the betting tab within the ESPN app will be powered by DraftKings.
For PENN, the pivot to theScore Bet represents a return to fundamentals. TheScore brand has strong recognition in Canada, where it operates a successful sportsbook in Ontario. PENN retained the 2.9 million users acquired during the ESPN partnership and is now focusing on cross-selling its Hollywood Casino product rather than competing head-to-head with FanDuel and DraftKings.
TheScore Bet launched in 21 jurisdictions on December 1, including the new Missouri market (the 39th state to legalize). The transition was seamless for existing users, with all account balances, open wagers, and settings preserved.
The Contrarian Lesson
Markets are efficient, even betting markets. When ESPN entered with massive fanfare and a famous brand, the assumption was that they’d capture significant share. They didn’t, because the fundamentals, product quality, operational efficiency, customer acquisition costs, didn’t support it.
The same dynamic plays out in betting lines every week. Public perception of team quality often lags actual performance. The fade the public strategy works because casual bettors rely on narratives and brand recognition rather than current data.
ESPN BET had brand recognition. It didn’t have the fundamentals. For contrarian bettors, this serves as a reminder: look at the underlying numbers, not the name on the jersey or the hype in the headlines.
Market Consolidation Continues
The ESPN BET failure accelerates consolidation in the sportsbook industry. The top four operators continue pulling away. Smaller players struggle to compete on promotional spending and technology investment. Prediction markets represent the only meaningful new competition on the horizon.
For bettors, this means fewer choices but potentially more stable operators. The contrarian edge comes from understanding how public money flows through these concentrated markets, not from chasing the newest platform with the biggest sign-up bonus.
The ESPN experiment is over. The lessons remain: brand doesn’t beat fundamentals, hype doesn’t beat execution, and perception eventually aligns with reality. The market corrects, in sports betting and in sports betting companies.